State Codes and Statutes
Statutes > Missouri > T08 > C108 > 108_405Refunding bonds, how issued.
108.405. The refunding bonds may be sold or exchanged forthe bonds being refunded, either as a whole or in installments,at any time or times, either at, before, or after the maturity ofthe bonds being refunded. However, if the refunding bonds aresold, the bonds being refunded pursuant to the provisions ofsections 108.400 to 108.410 shall have been outstanding for notless than one year and the bonds shall become due or shall besubject to redemption and payment in accordance with their termswithin ten years from the date of issuance of the refundingbonds. If the refunding bonds are sold more than one year priorto the maturity or redemption date of the bonds being refunded,the maturity of the refunding bonds shall not extend beyond thelast maturity date of the bonds being refunded, and, upon suchsale, the proceeds derived from the sale of the refunding bondsshall be placed in escrow with a bank or trust company havingfull trust powers and which shall be a member of the FederalDeposit Insurance Corporation. The proceeds shall be investedpromptly in direct obligations of the United States of America orof its agencies or instrumentalities or in obligations theprincipal of and the interest on which are unconditionallyguaranteed by the United States of America, which obligationsshall mature or be subject to redemption by the holder thereofnot later than the respective dates when the proceeds of theobligations, together with the interest accruing thereon, and anyother moneys or investments held in escrow, will be required forthe purposes intended.
(L. 1975 H.B. 721 § 2)
